Australian tech sector urges swift digital skills reforms

The Australian Computer Society has expressed support for the Productivity Commission's interim report, Building a Skilled and Adaptable Workforce, which urges significant reforms in digital skills recognition and education across Australia.

The Productivity Commission's report outlines the need for immediate changes to how digital skills are taught and recognised, with a particular emphasis on the role of educational technology in schools and ongoing workplace learning. These recommendations are in line with findings from ACS's own Digital Pulse 2025 report, which forecasts that bridging the nation's digital skills gap could add an estimated AUD $25 billion to the Australian economy by 2035.

Highlighting the growing importance of digital proficiency within the workforce, ACS Chief Executive Officer Josh Griggs said, "Digital skills are the foundation of Australia's economic future."

Griggs also noted the significant contribution the technology sector already makes to the country's economy. "The tech sector contributed AUD $134 billion to Australia's economy in the 2024 financial year. And we know the average worker now spends 3 hours a day using their digital skills.

"Still, there remains a significant skills gap experienced by over 150,000 businesses resulting in lost revenue, lagging tech adoption, and lower productivity."

Workforce challenges

The ACS has identified the need for modernising skills recognition and attainment systems, which forms a central part of the organisation's 10-point strategy for maximising the benefits of emerging technologies and preparing for the increasing influence of artificial intelligence in the workplace.

In its response to the Commission's findings, the ACS emphasised the importance of recognising prior learning and boosting workplace training opportunities, particularly for small and medium-sized enterprises. These steps, it said, are crucial to ensure that Australian workers are equipped for a labour market transformed by digital and AI technologies.

Recommendations outlined

ACS has called on the government to take four key actions to further accelerate digital skills development throughout the country. The first is to expedite the creation of a national framework for technology skills that is compatible with the internationally recognised Skills Framework for the Information Age (SFIA).

The second recommendation seeks a national target to have 20% of all entry-level technology hires come from alternative pathways by 2030. This aims to broaden access to the sector and address current workforce shortfalls.

ACS has also advocated for the implementation of earn-while-you-learn schemes, designed to overcome the primary obstacles to upskilling identified by workers - namely, time and cost. The organisation argues that such programmes would make it more feasible for workers to advance their skills without undue financial or personal burden.

Finally, ACS is promoting more entry-level opportunities for cybersecurity professionals. Given the growing importance of digital security, the organisation remarks that encouraging more Australians to pursue cybersecurity careers will help protect the increasingly online economy.

Economic and workforce impacts

Griggs emphasised the broader national benefits of digital upskilling, stating, "To compete globally, we need to ensure every worker, from frontline staff to the executive suite, has the capabilities to work with and lead digital transformation."

"If we close these gaps, Australia stands to unlock billions in economic growth, improve cyber resilience, and position itself as a global tech leader. Our plan is not just about fixing today's problems, it's about creating a future-ready nation."

The ACS's support for the Productivity Commission's recommendations illustrates an ongoing dialogue about the necessity of forming a more digitally adept workforce. Current data referenced by ACS shows that more than 150,000 businesses experience challenges caused by skills shortages, impeding technological adoption and overall productivity.

The Productivity Commission's interim report and the ACS recommendations both point to increasing the national focus on digital education, modernising learning recognition, and expanding access to new career pathways in the sector as essential measures for future economic resilience.